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Short day for the US Markets, closing at 1 pm in observance of the Fourth Of July Holiday.

At 1 pm the DOW closed above the 17,000 mark for the first time and the SP500 also closed at a new high at 1985.59. The problem I see with this bullish behavior is that the volume levels are pathetic and not conducive to positive bullish thinking. A hillbilly might put it this way, 'This ain't right'.

Follow up:

The past two sessions haven't passed the smell test in my opinion and investors need to be very cautious. If you are holding, continue to do so, but as far as supplementing your portfolio, I would wait.

The medium term indicators are leaning towards the hold side at the close. The all important signs of reversal, up or down, have not been observed so we are mostly, at best, neutral and conservatively holding. The important DMA's, volume and a host of other studies have not turned and that is not enough for me to start shorting. The SP500 MACD has turned flat, but remains above zero at 16.04. I would advise caution in taking any position during this volatile period.

The US dollar is trading between 80.05 and 80.53 and is currently trading down at 80.25, the bias is currently quiet and sideways. Earlier the Dollar gaped up 0.11 cents to 80.21 and then climbed higher to 80.53. Following that excitement the dollar fell back 0.24 cents to settle in for some sideways trading. There is a gap that will be filled in sooner than later that requires the Dollar to retrace its numbers back down to 80.10.

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